Business, Management and Economics Engineering

(In)effective communication about social responsibility? Examining large European businesses in the Czech Republic

Radka Macgregor Pelikanova — 2024-08-28

Purpose – Businesses are expected to be socially responsible by engaging in Corporate social responsibility (CSR) and even the Creation of shared values (CSV). The aim of this contribution is to critically explore whether large European businesses operating in Czechia, recognized as social responsibility leaders, effectively communicate CSR as opposed to their competitors.

Research methodology – A case study with three stages was conducted. First, 35 large European businesses were identified, which repeatedly ranked among the TOP 25 Czech companies with the highest social responsibility BpS synthetic index, and their 15 competitors. Second, an Internet search and content analysis of Websites of these 50 companies was performed to categorize and assess how they report about their socially responsible behaviors. Third, leading Czech disinformation websites were examined for evidence of tacit cooperation with the disinformation scene in the form of support via advertising.

Findings – The study revealed that large European businesses, recognized as social responsibility leaders, communicate extensively about their social responsibility. However, the effectiveness of such communications is controversial. In addition, a significant part of these businesses were found to be tacitly associated with disinformation platforms, which are completely at odds with with basic social responsibility concepts.

Research limitations – The qualitative nature of the case study does not allow direct generalizations.

Practical implications – The visualization of the juxtaposed results via comparative and complementary tables leads to pioneering propositions about the interest and lack of maturity regarding social responsibility, very diverse degrees of effectiveness of the communications, and even several alleged leaders failing in their efforts.

Originality/Value – It is the first study to compare CSR communications by alleged white sheep and black sheep, while having consistency tested by association with disinformation websites. The generated propositions call for further longitudinal and multi-jurisdiction studies to verify and enhance the awareness about efficient, effective, mature and consistent social responsibility in the EU.

Mechanism of introduction of quality management system at the enterprises of the construction industry: case of the Republic of Kazakhstan

Yeldar Zhuman — 2024-09-30

Purpose – The aim of the research was to apply the principles of the quality management system in order to establish a framework for implementing quality management practices within the construction industry.

Research methodology – The study involved analysing the global experience of certifying enterprises according to ISO 9001 standards. The research used a qualitative approach, analysing QMS documentation, case studies, and literature to gain a comprehensive understanding of QMS implementation in established companies.

Findings – It resulted in the development of a system model for introducing and implementing the quality management system in construction industry enterprises, following the ISO 9001 standard.

Practical implications – The enterprises of the Republic of Kazakhstan are not exceptions from world practice, including the enterprises of the construction industry. However, there are few construction industry enterprises that would be certified according to quality management standards, including the ISO 9001 standard. Some do not have the financial and human resources to implement a quality management system, others lack understanding of where to start.

Originality/Value – The study also focused on generalising and providing detailed insights into the processes involved in implementing the quality management system at construction industry enterprises.

The impact of the Russia-Ukraine war on the competitiveness of European airlines

Simona Hašková — 2024-10-02

Purpose – The research identifies the impact of the Russia-Ukraine war on the stock prices of six publicly traded European airlines and evaluates their ability to adapt to this situation.

Research methodology – The dependence of the development of airline stock prices on the level of public and institutional stress due to the war was measured using GoogleTrends and is analysed on the basis of a Vector Autoregression model (VAR).

Findings – A short-term negative relationship was confirmed between the development of stock prices and GoogleTrends; the impact of the stress related to the war was negligible about 5 months after the outbreak thereof. Those companies that were the fastest to adapt to the shock of the war in terms of share prices are identified.

Research limitations – The link between GoogleTrends, as an input variable reflecting market sentiment, and the stock prices of European airlines, is considered a limitation.

Practical implications – The impact of investor sentiment on the returns on the stocks of airlines is a thing of the past; which is an important finding for financial market participants and airlines alike.

Originality/value – The ability of the specific airlines to adapt to the shock of war creates a competitive advantage.

Leadership style preferences in Bangladesh’s SMEs: A study on transformational, transactional, and laissez-faire leadership

Manir Hossin — 2024-10-03

Purpose – over the years, small and medium enterprises (SMEs) have grappled with the challenge of adopting appropriate leadership styles domestically and globally. This study, thus, seeks to identify the prevalent leadership styles in Bangladesh’s SME sector, with a specific emphasis on transformational, transactional, and laissez-faire leadership.

Research methodology – a positivist research approach was employed to collect and analyse a dataset of 410 samples collected through a self-administered questionnaire survey to different SME owners and managers in Bangladesh. Descriptive statistics were employed for data analyses. Findings – the results revealed that generally SMEs are not recognised with universally accepted leadership style in practice in Bangladesh. Instead, leaders tend to employ all three styles based on individual preferences. Additionally, transformational leadership emerged as the most commonly practiced style, followed by transactional and laissez-faire leadership.

Research limitations – the study’s applicability is limited to SME owners and managers, specifically those in urban SMEs within a specific region. Thus, the generalisability of the results to employees and SMEs in rural contexts in Bangladesh presents a challenge.

Practical implications – the research insights may be used as valuable guidelines for SME owners and managers in conceptualising leadership styles and their practices, especially in Bangladesh’s SME sector.

Originality/Value – the originality of this research lies in addressing a critical issue where many struggle to apply suitable leadership approaches in varying situations.

Sustainable development goals in Kazakhstan’s academic landscape: a critical bibliometric study on sustainable development

Ieva Meidutė-Kavaliauskienė — 2024-10-04

Purpose – The purpose of this study is to conduct a bibliometric analysis of the academic activities of Kazakhstan’s academics and to present a comprehensive map of the academic landscape in the country.

Research methodology – The study combines synthesis and comparative scientific analysis of concepts and methods in the literature. It involves secondary data analysis, statistical processing, and bibliometric analysis to gather and interpret the data.

Findings – The analysis reveals a significant gap between the practical applications of Sustainable Development Goals (SDGs) in Kazakhstan and the academic research on the topic. Furthermore, academic activities and practices in Kazakhstan do not align well with the official reports on the SDGs. While some SDGs have comparable publications in Kazakhstan to global averages, others present distinct challenges and problematic issues unique to the country.

Research limitations – The study faces limitations due to the lack of data or difficulty accessing relevant information.

Practical implications – This research is crucial for promoting SDGs as it aids in understanding global issues, identifying knowledge gaps, and fostering interdisciplinary collaboration to ad- dress complex issues related to sustainable development. Additionally, examining a country’s academic activities through the lens of SDGs is essential for assessing the nation’s academic awareness and engagement with these global goals.

Originality/Value – The article provides a unique and valuable perspective on integrating sustainable development goals within Kazakhstan’s academic landscape, highlighting achievements and areas needing improvement.

The influence of unconventional monetary policy tools: an euro area perspective

Tomas Pečiulis — 2024-10-08

Purpose – This article aims to investigate the influence of unconventional monetary policy tools (UMPTs) employed by the European Central Bank (ECB) on the inflation rate and GDP growth rate within the euro area, motivated by the principles of the Taylor rule.

Research methodology – Elastic net regression with ARIMA residuals was used to analyse the relationship between UMPTs and economic indicators, measured by adjusted R-squared. Six samples were constructed, and hypothesis testing was performed using moving block bootstrapping. Residual diagnostics were used for model validation.

Findings – The study revealed significant impacts of UMPTs, particularly in combination with interest rates, on inflation rates. However, adjusted R-square values for GDP growth rate were less pronounced, indicating a more complex relationship. Research contributes to understanding the dynamics of monetary policy transmission mechanisms, informing policy institutions, and guiding future research directions.

Research limitations – Limitations include the focus on the euro area and the absence of analysis in other major economies. Future research should address these limitations and incorporate additional variables for a more comprehensive analysis.

Practical implications – The findings provide insight for policymakers regarding the efficacy of UMPTs in influencing inflation rates, aiding in informed decision-making in monetary policy formulation and implementation.

Originality/Value – This study contributes novelty by comprehensively analysing the relationship between UMPTs and economic indicators within the euro area, providing valuable insight into monetary policy institutions, and guiding future research directions.

Leveraging financial literacy into sustainable business performance: a mediated-moderated model

Kusuma Ratnawati — 2024-10-09

Purpose – The current study evaluates the linkage between financial literacy and the sustainable business performance model with access to finance and fintech adoption. Further, the moderating role of top management support in the linkage between financial literacy toward access to finance and fintech adoption was verified.

Research methodology – This research was conducted in the SME sector in Indonesia. The sample frame were 261 SMEs and 783 respondents from three levels of management. Data was collected in the October-December 2023 period. Data were obtained utilizing Likert-scaled questionnaires and analyzed using SmartPLS.

Findings – The results demonstrate that financial literacy is an instrumental driver of access to finance and fintech adoption that promotes sustainability performance. Subsequently, the study highlights the critical role of access to finance and fintech adoption as the mediator and top management support as moderator.

Research limitations – The study is solely performed on the SME sector in one country; thus, the findings’ generalization is lacking.

Practical implications – SME managers need to upgrade their financial literacy because financially knowledgeable managers are keenly informed of the costs, benefits, and risks related to funding schemes to encourage sustainable performance.

Originality/Value – Empirical research that explores the implication of financial literacy on access to finance and fintech adoption in promoting sustainability performance is lacking, reported solely on manufacturing companies and banks. Meanwhile, the SME sector, especially in developing countries, is understudied. Consequently, the initial study leads the examination of financial literacy’s role in enhancing access to finance and fintech adoption to foster the sustainability performance of SMEs.

Revisiting the dynamics of major cryptocurrencies

Osman Gulseven — 2024-10-17

Purpose – This study aims to reassess the dynamics of major cryptocurrencies sur-rounding recent economic and geopolitical events. By employing wavelet analysis and quantile regression methods, it seeks to understand the behavior of cryptocurrencies before, during, and after the COVID-19 pandemic.

Research methodology – This research employs the Least Asymmetric Daubechies (LA8) wavelet function to decompose log-returns of major cryptocurrencies into various frequency scales. Additionally, it utilizes wavelet coherence and quantile-on-quantile regression techniques to analyze daily price data spanning from July 2017 to May 2024.

Findings – The findings reveal a strong long-term association among cryptocurrencies, with a decline in medium-term correlations. Bitcoin exhibits synchronization with major cryptocurrencies, excluding Tether, while BTC-ETH and BTC-BNB display a rapid, interconnected behavior alongside their fundamental links. Moreover, empirical evidence indicates Bitcoin’s heterogeneous nexus with other alternatives, showcasing greater sensitivity to positive extremes over negative ones.

Research limitations – The study’s scope is delimited by the selected time frame (July 2017 to May 2024) for data analysis, potentially limiting insights into longer-term trends. Additionally, the reliance on specific methodologies like wavelet analysis might introduce constraints in capturing the entirety of cryptocurrency dynamics, leaving room for alternative interpretations or unexplored aspects.

Practical implications – Results suggest that understanding the varying correlations among major cryptocurrencies during different market phases could aid investors and policymakers in devising more nuanced strategies. Recognizing the sensitivity of Bitcoin’s connections with alternatives to market trends could inform risk management approaches, particularly in navigating extreme market conditions.

Originality/Value – The originality of this study lies in its comprehensive examination of cryptocurrency dynamics across varying time scales, utilizing wavelet analysis and quantile regression techniques. The findings offer valuable insights into the complex interconnections among cryptocurrencies, especially in terms of their sensitivity to different market conditions, providing a nuanced perspective for investors, analysts, and policymakers navigating the crypto landscape.

Risk profiling question investigation for robo-advisor

Eneng Nur Hasanah — 2024-10-25

Purpose – this study aims to thoroughly investigate by reviewing previous literature on risk assessment queries for robo-advisors, comparing it with three existing robo-advisors and proposing suitable risk assessment questions for robo-advisor.

Research methodology – utilize the deductive content analysis technique to examine the risk assessment issue for financial robo-advisors, which is influenced by previous study.

Findings – there are nine questions share a similar context both in previous literature and among existing robo-advisors, with income being the most commonly used question. Then, there are three questions that are only asked by the existing robo-advisors: emergency funds, home ownership, and the source of transaction. These findings suggest some additional questions to enhance the effectiveness of risk assessment in robo-advisory services for individuals.

Research limitations – only two previous research papers have focused on risk profiling, and three available applications used in this research.

Practical implications – the robo-advisor’s developer should take into account various factors such as local culture and economic conditions, financial product knowledge, etc. when crafting diverse risk profiles to provide more precise investment recommendations.

Originality/Value – the study is the first research which explore the risk profiling for financial robo-advisor, which used by existing robo-advisor then compared to other countries in the world.

Enhancing SME performance through innovation: evidence from a transition economy – Kosovo

Enis Mulolli — 2024-10-30

Purpose – What are the effects of implementing various types of innovation, including product, process, and technological innovations, on the performance of SMEs in the manufacturing sector? This is a question that preoccupies us a lot. This study seeks to examine the individual and integrated effects of these innovations. Indeed, we examine the impact of three categories of innovation – product, process, and technological innovation – on the performance of SMEs in the manufacturing industry.

Research methodology – We used a quantitative approach to execute this research, selecting SMEs at random using self-administered questionnaires. The data collected from 153 manufacturing SMEs was analyzed using hierarchical linear regression to investigate, evaluate, and refine the relation among product, process, and technological innovation and SME performance.

Findings – This study’s findings reveal a clear and direct relationship between these three forms of innovation and SMEs’ performance. This study also provides empirical evidence that various forms of innovation, either examined individually or as integrated, exert a positive effect on the performance of SMEs in the manufacturing industry.

Limitations – This study focuses on Kosovo-based SMEs, with the assumption of an upright connection between variables. Future studies can examine the existence of reverse causality in a variety of regional, cultural, and industrial settings.

Originality/Value – This study significantly advances existing knowledge by providing useful insights into the complex interplay among product, process, and technological innovation (examined from both individual and integrated perspectives) as well as the performance of SMEs in the manufacturing industry.